Forex Lull before the storm ??

Currency markets were little changed on Wednesday morning, as the traders seem unwilling to take major positions ahead of the all important FOMC meeting later today.
With a quarter percentage point rise already factored in, currency markets would eagerly look for any indications that the Fed may accelerate its “measured” monetary tightening. US data release revealed that ISM’s January manufacturing index fell to 56.4 from 57.3 in December.
Euro’s consolidation around the 1.3050 mark continues with Euro zone January manufacturing PMI outperforming both its US and UK counterparts, advancing to 51.9 from the previous month’s reading of 51.4.
The Japanese yen hardly moved in the early Tokyo session trading around the 103.60 levels – a government official commented that Japan should be more cautious in managing their forex reserves, which is the world’s largest. This could be an indication that the time is ripe for Japan to begin unwinding its colossal holdings of US securities to avert a portfolio erosion from dollar declines.
Cable managed to hold the 1.8850 mark notwithstanding a drop in January PMI to its lowest level since July 2003 ridiculing forecasts of an increase.